10 eCommerce Metrics That Every D2C Brand Must Track Regularly

In layman’s language, a metric is a quantifiable standard by which business performance can be measured. For instance, conversion rate, average order value, cart abandonment rate, and traffic sources, all of these are eCommerce metrics that help define development.

Meanwhile, metrics can only be measured if there’s enough data to do an analysis and draw conclusions.Google Analytics, social media sites, product pages, checkout and shopping carts, and even homepages are excellent sources of data which help interpret business results and derive trend measurement over time.

CR = (Total Number of Conversions/Total Number of Visitors on the Website) x 100

Conversion Rate (CR) is one of the most crucial eCommerce KPI metrics to keep track of. It ideally refers to the percentage of shoppers who completed a purchase on your website and converted into paying customers.

The higher the conversion rate, the higher your business revenue and hence, net profits. Meanwhile, a lower conversion rate depicts friction and leakages in your checkout funnel.

Here’s how you can calculate your eCommerce brand’s conversion rate.

If your conversion rate is low, check your site’s speed, pay attention to content, run a/b tests, and optimise your checkout funnel to fix leakages.

Customer Acquisition Cost = Cost Spent On Acquiring A Customer/Number of Customers Acquired

Customer acquisition cost or commonly termed CAC is an eCommerce metric that tells you how much it costs you to acquire a new customer.

Regularly tracking CAC helps you analyse areas of improvement as you can’t afford to spend all your money on acquiring new customers.

If your CAC is higher than the cost of sales and marketing, it’s time to reconsider your campaign efforts and bring down the cost. That’s because, if you're not getting enough customers, you’re not clocking enough sales, and this will hurt your profits in the long run.

Cart Abandonment Rate = (1 – Number of Completed Transactions / Number of Shopping Carts) x 100

Cart Abandonment Rate or CAR is another key metric that eCommerce brands should keep an eye on. This particular metric ideally informs you about the percentage of customers who added products to their shopping carts but dropped off midway without completing the purchase. There could be many reasons – a complicated checkout process, high delivery charges, lack of desired payment options, and more.

Here’s how you can calculate your eCommerce brand’s cart abandonment rate using this formula.

CLV = Customer Value x Average Customer Lifespan

or

Customer Value = (Average Purchase Value x Average Number of Purchases)

Customer Lifetime Value is an indicator of how much you’re earning from a single customer throughout its purchase history with your eCommerce brand.

It’s important to measure CLV as it gives you insight into your brand’s price point and popularity in the market. Meanwhile, if your CLV is higher than your Customer Acquisition Cost (CAC), you’re surely in a win-win situation. However, if the numbers are opposite, it’s time to make some amends. If you are not earning enough from a single customer after acquiring them, then your eCommerce brand will soon start clocking losses.

Here’s how you can calculate your CLV using this formula.

Repeat Customer Rate = (Numbers of Repeating Customers /Total Number of Customers) x 100

This eCommerce metric lets you analyse the percentage of your existing customers who’ve made purchases on your website more than once. If your repeat customer rate is low, it’s a sign that your online site is missing that important factor it takes to bring a customer back to make more purchases. Meanwhile, if the percentage hits the positive side, it’s definitely a win for your eCommerce business.

RCR also helps measure a shopper’s second, third, fourth, and all consecutive purchases over time, offering a snapshot of the customer’s sentiments. The higher the customer retention, the higher the customer satisfaction rate. This also means better product offering and shopping experience.

NPS = % of Promoters – % of Detractors

Net Promoter Score is one of the most prominent metrics and not just in the eCommerce industry.

To understand this metric, you need to know who Promoters and Detractors are.

NPS is calculated by sending out a survey with one question – “How likely would you recommend our product to a friend or family member.”

And, the customer responds to this question in the range of 1-10. Those who respond with 9 or 10 are Promoters, while 7 or 8 are considered Neutral, and those with a score less than 7 are Detractors.

Net promoter score allows you,

You can calculate the NPS and check whether it is more than 0 to be on the safe side. But if your score is negative, you must work on your product to make it better.

Average Order Value = Total Revenue / Number of orders

Average Order Value is one eCommerce metric that everyone keeps a track of but it’s critical to highlight its importance. Whenever a customer comes to your online store, you want them to spend more and AOV tells you exactly how much they are spending.

Increasing your average order value can save you delivery costs and is also an indicator of customers’ trust towards your eCommerce brand.

CRR = ((Number of Customers at end of the period – Number of new Customers during that period)/Number of Customers at the start of the period) x 100

Customer Retention Rate gives you a rate at which you are retaining your customers during a period. So, a low CRR means you are failing to impress new customers and are spending more to retain them. However, the opposite means higher profits and low customer acquisition costs.

It’s a great practice to look at your CRR because it will not only lower your CAC but also increase your CLV.

Bounce Rate = Total Number of One-page Visits / Total Number of Entries to a Website

The bounce rate tells you how many users are visiting only one page of your website before leaving. A high bounce rate means your customers are failing to find what they need from your website and hence leaving it even before exploring the site in detail.

To decrease your bounce rate,

Your website must also look trustworthy so that people stay on your website and make purchases. A high bounce rate also means that you’ll end up spending more money to get people on your site which means low profitability.

RTO Rate = (Good Cancelled/Rejected At Doorstep / Number Of Goods Sold) x 100

The return to origin (RTO) rate refers to the rate at which people cancel orders after they’ve left the warehouse or reject them at the time of delivery. This is more prominent when people place cash on delivery orders.

A high RTO rate means,

The best way to keep the RTO rate in check is by implementing necessary interventions on your website such as using RTO Protection Suite powered by GoKwik. Such tools help you identify high-risk shoppers with low buying intensity and prevent them from placing COD orders.

Mastering eCommerce metrics is the definitive way to transition from guesswork to data-backed growth. By consistently monitoring your performance indicators and optimizing for customer behavior, you build a resilient D2C brand. Focus on the data points that impact your bottom line to ensure your marketing strategy delivers sustainable results and long-term eCommerce success. Checkout the Marketing strategies to win ecommerce

Book a demo with GoKwik today to see how our solutions can help you optimize your checkout and improve your eCommerce metrics.